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China's March inflation eases, fueling questions about strength of recovery

China's inflation declined in March, easing pressure on consumers but fueling questions about the strength of its recovery.

Government data Tuesday showed consumer prices rose 2.1 percent, down from the previous month's 3.2 percent and well below the official target for the year. Wholesale prices declined by 1.9 percent compared with last year.

The decline in inflation suggests consumer demand is still lackluster despite a rebound in economic growth in the final quarter of last year.

China's recovery has been underpinned by government spending and bank lending, while consumer spending is growing more slowly than authorities want.